Know Your Worth: How to Determine Your Freelance Rate
Trying to figure out your rate when you first start off in freelancing can be nerve-wracking. How much is too little? How much is too much? There are different factors that go into determining your hourly rate. Here’s how to know your worth and determine how to determine your freelance rate.
People that work for someone else has hourly pay or salary set up for them already, along with potential benefits and the potential to grow, get promotions and raises. When you work for yourself, you have to take out your own taxes, worry about your own insurance and make sure you take your own time off. You also have to determine your own rate.
There’s an actual formula used to help determine said rate. Start by researching what someone of similar experience and job title would make in your field of work full-time. Websites like Glassdoor and Indeed have examples of different job titles and their typical pay. For example a brand strategist, on average, makes about $90,000/year. Thescopeblog.com has an hourly rate calculator to convert your ideal salary into your hourly rate. Once you do that, round up the number to the nearest five. That should be your rate you charge. In this case, your hourly rate would be $95 .
If you have routine services or bundle deals, using a flat rate would work as well. A hairstylist who holds specials for a wash, trim and style regularly would determine how long it would take to provide the service, how much each service would be a la carte and would create the price based on that.
As a freelancer, it can be tough to manage the ins and outs of your business. You still have bills to pay just like anyone else who works a regular 9-5, plus more even. If your rate sounds a little high after calculation, it’s for good reason. You’re worth it.